Trading Dashboard Orders (simple or complex)
Summary of User’s Problem and Solutions:
- The user, drazgo, is experiencing an issue with the trading dashboard where trades are defaulting to margin instead of cash, making it difficult to execute trades for shares purchased with cash.
- Fidelity representatives informed the user that they can switch the trade type from margin to cash before finalizing the trade, although the option may not be clear on the dashboard.
- They also explained the Autojournaling feature, which automatically moves eligible holdings from cash to margin, and suggested contacting Fidelity support to disable this feature if needed.
- Fidelity encouraged the user to reach out for personalized assistance to address the issues they are facing with the dashboard navigation and trade execution.
Here’s the full thread
On the trading dashboard, account trades are defaulted to margin… which is a problem when you have purchased shares with cash. There does not seem to be a way to change it from margin to cash (when you put in OCO it looks at margin shares… finds none, tells you it cannot proceed with OCO).
Regular trade option from main page gives you the option to use margin or cash when buying or selling.
Thanks for joining our Discord today!
Accounts that have enabled the margin feature will have the trade “type” default to margin in the trade ticket; however, you may choose to change the trade ‘type’ to cash before finalizing the trade. When trading in a margin account, all trades placed in the margin type, as this will allow your margin balances (including margin buying power) to be calculated correctly. However, if you have the cash available to cover a purchase, that cash will always be used before tapping into your margin borrowing.
That being said, it’s important to understand that margin accounts have a feature called Autojournaling. This feature moves eligible holdings from cash to margin when a security becomes margin-eligible. Eligible assets are normally moved automatically to margin the day after settlement. Holding shares in type margin increases borrowing power, provides automatic overdraft protection, allows for trading of unsettled funds and shares, and eliminates the need for clients to call Fidelity to move eligible securities into margin. Because of this, securities purchased in type Cash will automatically be journaled to type Margin overnight. If you would like to disable the autojournal feature or if you still do not have to ability to switch between cash and margin types, please contact us to do so.
Fidelity Contact Information: https://www.fidelity.com/customer-service/contact-us
For more information regarding margin trading, you may visit the links below.
Margin Trading Overview: https://www.fidelity.com/trading/margin-loans/margin-trading
Margin Trading FAQs: https://www.fidelity.com/trading/faqs-margin
Fidelity Learning Center: Using margin: https://www.fidelity.com/learning-center/trading-investing/using-margin
Let us know if you have additional questions!🟢
Appreciate the reply, but that option is either not available or not evident. On the main account page, I can select an account, choose trade, and at the bottom of the trade profile popup, I can choose Margin or Cash. When I am taken to the Dashboard, that option is not available, or at least, not available in a way that is intuitive to find.
When I try to sell a security, it tells me it cannot find my shares because they are not on Margin, but gives me no alternative to make the change to put the trade in Cash.
So need some step by step here to get me to where I can make a trade from the Dashboard in Cash.
Thank you
We appreciate you following up with us, @drazgo!
To best assist you and review what you are seeing, please give us a call and a Fidelity representative can review your account.
Contact us: https://www.fidelity.com/customer-service/contact-us
We hope to hear from you soon. 🟢
@FidelityMarian
How do I action the following:
For this example, let’s say I start out with 0 shares of stock, ABC.
1. limit order to BUY 10 shares of ABC stock @ $10/share.
2. limit order to SELL 10 shares of ABC stock @ $20/share.
Can I put in these two limit orders at the same time? Or must I wait for the first limit order to go through first (ie, in order to HAVE the 10 shares to sell).
** ignoring for the moment good faith violation considerations
Thank you
Thanks for reaching out to us, @CrashNoctis!
So, the short answer is yes, if you are looking to place a limit order to buy, and then, if that order goes through, then the second limit order to sell would trigger. You typically would not be able to place an order to sell shares you do not own within a cash account.
What the above is describing is a one-triggers-the-other (OTO) order. A one-triggers-the-other order actually creates both a primary and a secondary order. If the primary order executes, the secondary order automatically triggers.
You can learn more about this type of conditional order by selecting the link below.
What is a conditional order?: https://www.fidelity.com/learning-center/trading-investing/trading/conditional-order-types
To place conditional orders on Fidelity.com, please follow the steps below:
1. Hover on the “Accounts & Trade” tab and select “Trade”.
2. Choose the account for the trade.
3. From the “Transaction Type” menu, select “Conditional”.
Let us know if you have any additional questions! We hope to see you around the discord again. 🟢
Thank you so much!